SBP facilitates exporters by restoring advance payment facility

KARACHI: The State Bank of Pakistan (SBP) has allowed the authorised dealers to effect advance payments up to $10,000 per invoice on behalf of importers-cum-exporters for the import of raw materials, accessories and spare parts.

Earlier, SBP had restricted the advance payment facility in July 2018 which was previously allowed to importers through authorised dealers. However, on the intervention of the chambers of commerce, trade associations and the Ministry of Commerce, the central bank decided to relax this ban to the extent of exporters who have to import accessories, raw material and spare parts. It is expected that this move would improve the export environment.